Method and definitions
Lifetime = 1 ÷ monthly churn as a decimal, or supplied lifetime. Revenue LTV = monthly revenue × lifetime. Gross-profit LTV = revenue LTV × gross margin. LTV:CAC = gross-profit LTV ÷ CAC.
The churn model assumes constant revenue, margin and churn over time. It excludes discounting, expansion and changing cohorts. Zero churn cannot imply an infinite measured lifetime. Choose the lifetime model if you have cohort evidence. This estimates gross-profit value, not a profit guarantee.